MILLIONS of workers are still relying on the state pension to fund their retirement despite warnings of poverty in their old age.

Millions of workers are still relying on the state pension to fund their retirement []

Almost two thirds (65 per cent) say the current pension of just £102.15 will provide them with their income after they have stopped working.

But experts have warned that these people will struggle to survive financially because the pension is not enough to pay the bills.

Price rises have pushed up the cost of energy, petrol and food in the last year and with inflation eating away at any pension rise governments may give in the future, pensioners living off only the state pension will have a very tough time making ends meet. Michael Brown, pension expert at Gallagher Employee Benefits, said: “The data reveals just how unrealistic and complacent Britons are when it comes to retirement planning.”

He added: “The only way to ward off poverty in retirement is to save independently into a second pension scheme.”

There is some hope that the younger generation of workers is taking heed of the warnings.

There is some hope that the younger generation of workers is taking heed of the warnings

Reliance on the state pension drops to 44 per cent among those aged under 35, compared to 62 per cent of 35-54 year-olds and 84 per cent of those over 55. But in a blow to the Government’s plans to introduce auto-enrolment into the new company pension scheme Nest, only four per cent of staff said they expect it to form part of their retirement planning.

Less than half (47 per cent) are relying on a private pension, followed by a quarter who named ISAs as their main retirement income source, according to figures from the financial advice website Unbiased.

And one in seven women expects their partner to provide a pension compared to five per cent of men.

Karen Barrett, chief executive at unbiased.co.uk, said: “It is important to realise that simply relying on the state to provide for you is not going to be enough.”